Boeing to cut 4,500 jobs to reduce costs

New orders have been drying up for the leading aviation firm

Boeing to cut 4,500 jobs to reduce costs

Elaine Thompson / AP

The world's largest plane manufacturer Boeing has announced plans to cut 4,500 jobs by the middle of next year to reduce costs.

A spokesperson has revealed that 1,600 positions will go through voluntary redundancies while the remainder will take place through attrition.

This reduction in the company's headcount will include the culling of "hundreds" of executive and managerial positions.

The majority of the layoffs will be in the company's commercial aircraft division because customers have been ordering fewer planes.

These jobs account for almost 3% of Boeing's overall workforce.

Boeing delivered a record 762 planes last year but new orders have been drying up and the company has lost ground to its main rival, Airbus.

A spokesperson indicated that the company will focus on reducing costs in other areas by improving productivity, reducing inventory and cutting back on business travel.